It’s no secret that filing for bankruptcy will put some of your belongings at risk. Despite the financial refresh this process can offer, many have concerns about whether or not they will lose their property during this process. If you’re worried about losing your personal belongings when filing for bankruptcy, you’ll want to keep reading. The following blog explores what property could be at risk and how a Memphis, TN consumer bankruptcy lawyer can assist you during these challenging times.
Will I Lose My Personal Belongings When I File for Bankruptcy?
Generally, most people who file for bankruptcy will not have to worry about losing their electronics, furniture, or the majority of their other household goods. If you file for Chapter 13 bankruptcy, you won’t have to worry about losing your belongings, as this operates on a repayment plan. As such, it is not necessary to liquidate your assets.
Chapter 7, on the other hand, may be different. In general, creditors will not take your personal belongings because they often have little monetary value attached to them. However, if there is a high-value item, it may be at risk. Luckily, your attorney may be able to help you claim an exemption upon filing.
You should also consider that if you purchased an item using a credit card, there may be a security agreement attached. Like a car loan, this means you may choose between surrendering the asset or working out a negotiated amount, allowing you to retain the property for a price.
What Assets Are Generally At Risk When I File?
If you want to file for bankruptcy, it’s necessary to understand what assets are at risk. While not all of these assets will be taken, they will be valued and can be used to pay the debt you owe during Chapter 7 bankruptcy.
Generally, your car, land, investments, homes, and savings accounts can all be at risk of repossession by creditors. As mentioned, high-value items like expensive jewelry, designer clothing, or artwork can also be at risk. However, you may be able to use state or federal exemptions to help you retain your home, investments, or personal property.
Before filing for bankruptcy, it is essential to enlist the assistance of an experienced bankruptcy attorney, as they can help advise you as to which Chapter is in your best interest. If they advise you to go with Chapter 7, they can provide additional information as to which exemptions you can invoke based on your circumstances to help protect your property.
When you want to file for bankruptcy, the Arnold Law Firm is here to help. We are dedicated to helping protect as much of your property as possible during these challenging times. Contact our firm today to learn how we can help you achieve a fresh financial start through bankruptcy.
